Fang Holdings Limited (NYSE:SFUN) Q1 2019 Earnings Conference Call - Final Transcript

Jun 17, 2019 • 05:30 pm ET

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Fang Holdings Limited (NYSE:SFUN) Q1 2019 Earnings Conference Call - Final Transcript

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Executive
Jessie Yang

a decrease of 11.8% from $48 million in the corresponding period of 2018. Selling expenses were $18.6 million in the first quarter of 2019, an increase of 12.9% from $16.4 million for the corresponding period of 2018, this is primarily driven by an increase in advertising and promotional expenses.

General and administrative expenses were $23.9 million in the first quarter of 2019, a decrease of 24% from $31.5 million for the corresponding period of 2018. This is caused by decrease in bad debts and staff costs. Operating loss was $2 million in the first quarter of 2019, compared to operating loss of $3.9 million in the corresponding period of 2018. This is caused by the decline of operating expenses.

Change in fair value of securities for the first quarter of 2019 was a gain of $32.1 million, compared to a loss of $42.2 million in the corresponding period of 2018 and the fluctuation was due to the increase in market price of investment in equity securities. Income tax expenses were $12.6 million in the first quarter of 2019, compared to income tax benefit of $4.2 million in the corresponding period of 2018.

Net Income attributable to Fang's shareholders was $13.4 million in the first quarter of 2019, compared to net loss of $44.9 million in the corresponding period of 2018. Income per ordinary share and ADS were $0.15 and $0.03 in the first quarter of 2019, compared to loss of $0.51 and $0.10, respectively in the corresponding period of 2018.

Adjusted EBITDA, defined as GAAP net income before share-based compensation, investment income, realized gain on sale available-for-sale securities change in fair value of securities, income taxes, interest expenses, interest income and depreciation and amortization was $6.9 million in the first quarter of 2019 compared to the $7.1 million in the corresponding period of 2018.

As of March 31, 2019, Fang had cash and cash equivalents, restricted cash current and non-current and short-term investments of $477.1 million, compared to $463.6 million as of December 31, 2018.

Based on current operations and market conditions, Fang's non-GAAP net income is expected to be profitable for the fiscal year ending December 31, 2019. These estimates represent management's current and preliminary view, which are subject to change.

Thank you very much for joining us today. And we're now open for questions. Operator, please go ahead.